WASHINGTON: The International Monetary Fund’s Executive Board of approved a disbursement of US$45.6 million or 25 percent of quota to be drawn from the Rapid Credit Facility (RCF) US36.5 million or 20 percent of the country’s quota in immediate debt relief under the Catastrophe Containment and Relief (CCR) Trust.
The additional IMF funding ought to help catalyse further assistance from the international community, preferably grants. The CCR funds will be applied to immediately repay outstanding debt up to the equivalent of 20 percent of Liberia’s quota (SDR 25.84 million).
The RCF funds will support the authorities fight against the Ebola outbreak by covering urgent budgetary and balance of payments needs and strengthening international reserves.
Shinohara, Chair and Deputy Managing Director, said, “The Ebola outbreak continues to cripple the Liberian economy, although the recent decline in new cases is welcome. Economic activity has decelerated significantly, and fiscal and external financing needs are more pronounced than envisaged at the time of the Extended Credit Facility (ECF) augmentation. The economy is projected to stagnate in 2014 and contract in 2015, due to the ongoing impact of the epidemic and lower investment in mining and infrastructure. A gradual recovery in economic activity is projected to take hold in 2016, led by a rebound in services.”
